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Institutional Presentation December/ 2019 Pepperoni 1 Pizza
Disclaimer
The material that follows is a presentation of general background information about International Meal Company Alimentação
S.A. (“IMC” or the “Company”) as of the date of the presentation. It is information in summary form and does not purport to be
complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the
accuracy, fairness, or completeness of this information.
This presentation may contain certain forward-looking statements and information relating to the Company that reflect the
current views and/or expectations of the Company and its management with respect to its performance, business and future
events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply
future results, performance or achievements, and may contain words like “believe”, “anticipate”, “expect”, “envisages”, “will
likely result”, or any other words or phrases of similar meaning, which speak only as of the date the statement was made.
Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important
factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions
expressed in this presentation. Neither the Company nor any of its affiliates, directors, officers, agents or employees shall be
liable before any third party (including investors) for any investment or business decision made or action taken in reliance on
the information and statements contained in this presentation or for any consequential, special or similar damages.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any
securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment
whatsoever.
The market and competitive position data, including market forecasts, used throughout this presentation was obtained from
internal surveys, market research, publicly available information and industry publications. Although we have no reason to
believe that any of this information or these reports are inaccurate in any material respect, we have not independently verified
the competitive position, market share, market size, market growth or other data provided by third parties or by industry or
other publications.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole
or in part without the Company’s prior written consent. Please, for any investment decision, read the risk factor section in the
Company’s “Formulário de Referência”, available in our IR website.
2
IMC at a Glance - Geographic Footprint*
POINTS OF SALE
Brazil 453 United States
193 52
66 15
22
25 6¹
28 2
6
Colombia Panama
13 13
8 9
8 1
Airport Restaurants (multiple brands)
3
*As of September/2019. (¹) Includes two operations at airports
IMC at a Glance – P&L Figures
Financial Figures – LTM
Net Debt/
Net Revenues Gross Profit Adj. EBITDA
Adj. EBITDA
R$499 R$137 R$1.4x
R$1,565 32% margin 8.7% margin
R$185mm net
debt
Revenues – LTM Adjusted EBITDA – LTM
Brazil: 28%
Caribbean¹
Caribbean¹
12% Roads
Airports
29% Malls
59%
USA Brazil
USA
4
LTM Non IFRS-16 Figures - last reported figures 3Q19 ¹ Caribbean consists of Colombia and Panama
Brands Portfolio
IMC main* brands with traditional history among consumers
Relevant
Brands Start Date Number of Stores Highlight
Country
1952 25 Pioneer roadside restaurant
Buffet style restaurant specialized
1975 521
in Brazilian cuisine
Jimmy Buffett’s Caribbean-
1987/2011 18² / 4
inspired restaurant
One of the largest Italian Casual
1982 6³
Dining Restaurant Chain in the US
Airport catering operations, mainly
1958 6⁴ / 8⁴
at regional airports
Airport Restaurants - 51 Several brands
World's second-largest restaurant
1930 66
chain
World's largest pizza chain in
1958 193
terms of locations
Source: As of September, 2019; Notes: *Represents 96% of the footprint. (¹) Includes Viena, V. Café, Viena Express, Viena Snacks, Viena Café, Viena Delicatessen, Viena Gourmet and Viena Delish. (²) Includes
5
two operations at hospitals (Viena Pizza and Pollo Tropical) and one Viena at MIA airport. (³) Includes two operations at airports. (⁴) At the catering division, please consider airports in which we operate.
IMC Adjusted EBITDA Evolution
+10%
136
+20% 121 Flat
116 116
101
Adj. EBITDA
6.5% 8.1% 8.6% 9.6% 9.8%
Margin
R$ million Non-IFRS 16 Figures 6
IMC Strategy Plan
Growth with high ROIC
Brown field expansion on
Frango Assado • Active conversations
Expansion the southeast region
• 3 acquisitions per year for 5 years*
US Expansion within touristic • 10 new locations (2020-2021)
Expansion cities at iconic locations • 3 openings per year for 5 years*
Expand both brands restaurants • Expansion through franchise and own stores
Pizza Hut and KFC
base • Franchisee Acquisitions
Expansion
• 40 openings per year per brand 50% own stores*
Margin
Unification and automation of our
Central • Central Kitchen ready
central kitchen to improve
Kitchen • Soft start in late November
Central Kitchen margins in Brazil
Structure
• Viena stores conversion or store sale to
IMC focus at Airports and Hospitals
Reduce business complexity
Simplification
• Evaluate sale of other brands
*Beginning 2020
7
1
Frango Assado Expansion
Solid SSS performance on Existing market is huge and Looking for brownfield
tough macro environment fragmented opportunities with high ROIC
~1,100 highway gas stations only in the Target Southeast Region
state of São Paulo
~ R$10 million per unis (capex + key Money)
4-5 years payback
3 units per year
*Truckers strike effect over the 2Q18
8
2
Margaritaville and LandShark Expansion
Strong cash generation within Expansion supported by the Expansion at iconic locations in the
the businesses landlord generating high ROIC USA, following the American tourists
Expansion until 2021 already
secured
50% Landlord
Mgmt. fee
Capex ~3-4% of sales
50%
Above 80% of the EBITDA
converting to cash in 2018 Total Capex
Hawaii
~US$ 5M/store
10 new locations
3 units per year
~US$ 3M/store Existing store
New store
~70% of our guests
are tourists
9USA Expansion 2
Recent opened stores with good returns
LandShark Daytona – 20 LandShark Branson - 7 Pipeline 2020-2021
Months Months
15 months Payback Currently at 11% of Invested Capital 10 restaurants already signed
• River Center, San Antonio, TX (2020)
• Bayside, Miami, FL (2020)
• Times Square, NYC, NY (2020)
(928)
+654 +131 (1.041) +113 • Barefoot Landing, Myrtle Beach, SC (2020)
• Oahu, Hawaii, HI (2021)
• Times Square, NYC, NY (2020)
(524)
• Bayside, Miami, FL (2020)
• Faneuil Hall, Boston, MA (2020)
Initial Capex Bizz Performance Return Initial Capex Bizz Perfomance Return
• Pocono Springs, Poconos, PA (2021)
• Oahu, Hawaii, HI (2021)
Business Performance (EBITDA – Maintenance Capex – Taxes)
104
Central Kitchen
Construction Done
Located at Louveira/SP, 60 km from São Paulo
67% less employees
2.3x more production capacity
Equipments are being assembled
Operating in December/2019
Soft start of the new Central Kitchen in the end of November
and the closure of Viena’s Old Kitchen in December
Gradual implementation at the
restaurants within 1H20
Start on January 2020 – End on June 2020
Roll-out in phases to mitigate risks
113
MultiQSR Agreement
New shares issued New Board in place 14 Post Merger Integration
Flávio Benício Jansen
Chairman 1. IT
~196 million shares 2. Treasury
Marcel Fleischmann 3. Supply
outstanding 4. S&OP
José Agote 5. HR
6. Quality
Rodrigo Furtado
7. Pricing
Joseph Call 8. FP&A
9. Legal
~13% Martins Family Lincoln Martins 10. Accounting
Educação
11. Internal Communication
~2% Yum! Brands Charles Martins 12. Product Registration
13. Internal Audit
14. Tax
123
Why do we like the deal? - Market
Attractive growth in the fast Pizza Market is big and Chicken is the most consumed
food market in Brazil fragmented protein in Brazil
(kg/per capita 2017)
10% CAGR between Market Size ($)
2012-2017 United
States
Brazil
18%
1 st
2 nd
PIZZA 50%
36k
restaurants 32%
Source: Company Source: ECD and Statista
Pizza Hut with 0.5%
Market Share Largest Chicken
Restaurant Chain is KFC
wiht more than 60 stores
133
Why do we like the deal? - Company
Iconic and valuable brands Variety of stores type Franchise business helps to
globally increases addressable market expand store base without capex
2018 world's most valuable and
strongest restaurant brands.
Food Court
(Shopping Malls)
1st
2nd Royalties
DELCO Franchisee
Capex % Sales
(Delivery/Carryout)
3rd
KFC
7th Free Standing
Source: Brand Finance Restaurants
143
Why do we like the deal? - Synergies
Significant suppliers synergies Store-in-store at our Frango Conversion of non-performing
Assado Restaurants Viena stores
IMC: 1.1 Ton
Chicken
MultiQSR: 2.5 Ton Immediate access to 25 high
traffic locations (Frango Assado) in Malls
IMC: 1.6 Ton
Flour
MultiQSR: 1.6 Ton
Credit Card IMC: R$600mn
Transactions MultiQSR: R$400mn And/
or
Equipment and
Others
153
Pizza Hut and KFC Expansion Plan
10 new stores (6 Pizza Hut and 4 KFC) since Mar/19
259 stores end of Sep/19 Pizza Hut KFC
+10 stores vs. Mar/19 +6 Stores vs. Mar/19 +4 stores vs. Mar/19
193 66
13 Owned 20 Owned
KFC
180 Franchisees 46 Franchisees
16IMC Expansion Plan
Beginning 2020 Expansion Guidance
Pizza Hut and KFC Frango Assado Margaritaville and LandShark
+80 stores/year at 50% owned +3 Stores/year +3 Stores/year
+40 +40
KFC
Owned +20 +20
Hawaii
Franchise +20 +20
Existing store
New stores already signed
17Financial Highlights
Financial and Operational Highlights
Net Revenue Adjusted EBITDA and EBITDA Margin
(R$ Million) (R$ Million and %)
2000
9.6% 9.8%
8.6%
8.1%
1,541 1,582 6.5%
1,495
195 191
179
1,206 1,189
391 368 439 142 141
359 366
136
121 116 116
101
955 947 952
705 682
2016 2017 2018 9M18 9M19 2016 2017 2018 9M18 9M19
Brazil USA Caribbean
Same Store Sales (SSS) Number of Stores
(Growth in R$,%) (#)
252 242 241
26 231 227 222
24 24 213 212 210
20 23 22 22 195
19 20 20 21 21 21 194
22 22 22 22 22
21 22 22 22 21 21
21 21 22
21 22 22 22
-2.8% 23 23
-4.6%
-4.9%
-10.3% 184 177 175 167 162 157 149 147 145 129 128
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
IMC Brazil Caribbean USA Brazil Panama USA Colombia
19Financial and Operational Highlights
Indebtedness (3Q19)
Debt and Leverage Breakdown by Type
(R$ Million)
1.4x Foreign Libor
24% 24%
0.5x
0.2x
-0.3x
552
334
160 206 185
22 66
-31
2016 2017 2018 3Q19
Local CDI
Gross Debt Net Debt Net Debt/ Adj. EBTDA LTM 76% 76%
Debt Amortization Schedule
234
175
102
92
68
37
Cash and Cash Equivalents Short-Term 2021 2022 2023 2024+
20Speakers
CEO
Newton Maia Alves
IRO
Luis Felipe Bresaola
Phone: +55 11 3041.9653
ri@internationalmealcompany.com
www.internationalmealcompany.com/ir
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